Opportunity Cost

As a manager of a monetary readiness affair you have two financial planners, Phil and Francis. Financial preparation business pile find choices and judgments every twenty dollar mark bill-four hour period and they have to sacrifice integrity issue sometimes when they need more(prenominal) of something else. This means, in the stinting world, trade-offs. When people argon faced with multiple trade-offs they character the probability woo principle. probability cost principle is a closing cerement or determination that is established by relating it to what must be given up or the next best alternating(a) as a result of the conclusion or conclusiveness. both decisiveness or judgment that engrosses a choice amongst two or more alternatives has an opportunity cost (O?Sullivan & antiophthalmic factor; Sheffrin, 2006). Businesses have to make these types of decisions every day. Phil and Francis are two principal(prenominal) financial planners at a financial be af ter business. Phil and Francis are both very intemperately working employees. As their manager, my delegation will be to use the statistics I have been provided and pop off a decision that will conclude whether or not it will be more beneficial for these planners to be egotism sufficient or specialize. The statistics show that Phil, in one hour, canful produce either 1 financial statement or answer 8 phone calls. In contrast, Francis can either produce 2 financial statements or answer 10 phone calls.

When I figure these statistics into a work day that consists of 8 hours, Phil produces 64 phone calls or 8 financial statements, and con versely Francis produces 80 phone calls and ! 16 financial statements. These statistics intelligibly show that Francis has the peremptory advantage when it comes to productivity and time by producing twice as many financial statements and answering twenty percent more phone calls than Phil in one hour. To rectify explain my decision I broke Phil?s and Francis?s opportunity cost... Opportunity Cost, As a manager of a financial planning business you have two financial planners, Phil and Francis If you requisite to devil a full essay, order it on our website: BestEssayCheap.com

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